| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 5/6 |
| Past Performance | 3/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
LOVE Stock Overview
The Lovesac Company designs, manufactures, and sells furniture.
Rewards
Risk Analysis
Lovesac Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$52.61 |
| 52 Week High | US$95.51 |
| 52 Week Low | US$47.72 |
| Beta | 2.29 |
| 1 Month Change | -18.24% |
| 3 Month Change | -26.89% |
| 1 Year Change | 7.63% |
| 3 Year Change | 122.83% |
| 5 Year Change | n/a |
| Change since IPO | 119.30% |
Recent News & Updates
Shareholder Returns
| LOVE | US Consumer Durables | US Market | |
|---|---|---|---|
| 7D | -6.0% | 2.1% | -0.5% |
| 1Y | 7.6% | 23.6% | 13.7% |
Return vs Industry: LOVE underperformed the US Consumer Durables industry which returned 23.6% over the past year.
Return vs Market: LOVE underperformed the US Market which returned 13.7% over the past year.
Price Volatility
| LOVE volatility | |
|---|---|
| LOVE Average Weekly Movement | 11.1% |
| Consumer Durables Industry Average Movement | 6.5% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: LOVE is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: LOVE's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1995 | 574 | Shawn Nelson | https://www.lovesac.com |
The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and accessories comprising drink holders, foot sac blankets, decorative pillows, fitted seat tables, and ottomans. As of January 31, 2021, the Company operated 108 showrooms.
Lovesac Fundamentals Summary
| LOVE fundamental statistics | |
|---|---|
| Market Cap | US$795.63m |
| Earnings (TTM) | US$34.96m |
| Revenue (TTM) | US$431.72m |
22.8x
P/E Ratio1.8x
P/S RatioIs LOVE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| LOVE income statement (TTM) | |
|---|---|
| Revenue | US$431.72m |
| Cost of Revenue | US$192.87m |
| Gross Profit | US$238.85m |
| Expenses | US$203.89m |
| Earnings | US$34.96m |
Last Reported Earnings
Oct 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.31 |
| Gross Margin | 55.33% |
| Net Profit Margin | 8.10% |
| Debt/Equity Ratio | 0% |
How did LOVE perform over the long term?
See historical performance and comparisonValuation
Is Lovesac undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LOVE ($52.61) is trading below our estimate of fair value ($154.61)
Significantly Below Fair Value: LOVE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LOVE is poor value based on its PE Ratio (22.8x) compared to the US Consumer Durables industry average (9.6x).
PE vs Market: LOVE is poor value based on its PE Ratio (22.8x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: LOVE is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: LOVE is overvalued based on its PB Ratio (6.6x) compared to the US Consumer Durables industry average (1.9x).
Future Growth
How is Lovesac forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
36.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LOVE's forecast earnings growth (36.4% per year) is above the savings rate (2%).
Earnings vs Market: LOVE's earnings (36.4% per year) are forecast to grow faster than the US market (13% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LOVE's revenue (17.2% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: LOVE's revenue (17.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LOVE's Return on Equity is forecast to be high in 3 years time (21.5%)
Past Performance
How has Lovesac performed over the past 5 years?
44.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LOVE has a high level of non-cash earnings.
Growing Profit Margin: LOVE became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: LOVE has become profitable over the past 5 years, growing earnings by 44.3% per year.
Accelerating Growth: LOVE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: LOVE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (74.2%).
Return on Equity
High ROE: LOVE's Return on Equity (29%) is considered high.
Financial Health
How is Lovesac's financial position?
Financial Position Analysis
Short Term Liabilities: LOVE's short term assets ($163.6M) exceed its short term liabilities ($81.6M).
Long Term Liabilities: LOVE's short term assets ($163.6M) exceed its long term liabilities ($90.7M).
Debt to Equity History and Analysis
Debt Level: LOVE is debt free.
Reducing Debt: LOVE has no debt compared to 5 years ago when its debt to equity ratio was 54.7%.
Debt Coverage: LOVE has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: LOVE has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Lovesac current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LOVE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LOVE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LOVE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LOVE's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LOVE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Shawn Nelson (44 yo)
24yrs
Tenure
US$2,027,626
Compensation
Mr. Shawn David Nelson founded The Lovesac Company in 1998 and has been its Chief Executive Officer and Director since 2017. Mr. Nelson is the lead designer of its patented products and directly oversees d...
CEO Compensation Analysis
Compensation vs Market: Shawn's total compensation ($USD2.03M) is about average for companies of similar size in the US market ($USD2.31M).
Compensation vs Earnings: Shawn's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: LOVE's management team is considered experienced (4 years average tenure).
Board Members
Experienced Board: LOVE's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LOVE insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.
Top Shareholders
Company Information
The Lovesac Company's employee growth, exchange listings and data sources
Key Information
- Name: The Lovesac Company
- Ticker: LOVE
- Exchange: NasdaqGM
- Founded: 1995
- Industry: Home Furnishings
- Sector: Consumer Durables
- Implied Market Cap: US$795.625m
- Shares outstanding: 15.12m
- Website: https://www.lovesac.com
Number of Employees
Location
- The Lovesac Company
- Two Landmark Square
- Suite 300
- Stamford
- Connecticut
- 6901
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:16 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/10/31 |
| Annual Earnings | 2021/01/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.